Ultra-Wealthy Flee Dubai as Family Office Capital Rapidly Reallocates to Hong Kong, Singapore and Switzerland

Global Wealth Exodus Accelerates Amid Expanding Dubai Risks
Competition Intensifies Among Financial Hubs Leveraging Tax, Legal and Financial Infrastructure
Battle for Family Office Capital Enters New Phase

As the Iran war shatters Dubai’s long-standing reputation as a geopolitical safe haven, global ultra-high-net-worth individuals and family office (FO) capital are rapidly seeking alternative jurisdictions. From Hong Kong, which is aggressively marketing tax incentives and market competitiveness, to Singapore with its strong rule of law and asset-protection framework, and Switzerland, the traditional bastion of safe-haven wealth, global financial centers are entering an intensified race to absorb Middle Eastern capital outflows. At the same time, the asset-allocation strategies of the wealthy, once focused primarily on tax optimization, are being fundamentally reshaped in the post-war era toward prioritizing political stability, legal certainty and capital accessibility.

Hong Kong Draws Interest With Low Taxes and Simplified FO Setup Procedures

According to CNBC on June 17 local time, as the Iran war undermines Dubai’s image as a safe-haven destination, Hong Kong’s expanded tax incentives for family offices are attracting wealthy investors reconsidering their Middle East exposure. Gavin Chiu, a partner at British law firm Charles Russell Speechlys specializing in fund formation, told CNBC, “I am speaking almost daily with families considering setting up family offices in Hong Kong, including families that had previously left the city.”

The trend is also reflected in the data. The Hong Kong government recently disclosed that around 160 family offices are preparing to establish or expand operations in the city. According to Deloitte, Hong Kong already hosted 3,384 single-family offices (SFOs) as of the end of 2025, an increase of 681 within two years. SFOs refer to family offices dedicated exclusively to managing the assets of a single individual or family.

Hong Kong’s appeal to wealthy investors stems not only from its favorable tax environment for family office operations, but also from its status as a global capital hub conducive to wealth expansion. According to financial data provider LSEG, Hong Kong ranked first globally last year after raising more than $37 billion through IPOs. In the first quarter of this year alone, the city attracted $13.3 billion in IPO proceeds, significantly outperforming both Nasdaq and the New York Stock Exchange.

Hong Kong has long attracted capital through its simple and low-tax regime. The city imposes no capital gains tax, value-added tax, estate tax, inheritance tax or withholding tax on dividends and interest income. Corporate taxation follows a two-tier system, with an 8.25% tax rate applied to the first approximately $255,000 in corporate profits. In addition, qualifying SFOs are eligible for tax exemptions, creating an exceptionally favorable environment for wealth preservation and management.

To aggressively attract family office demand, the Hong Kong government has continuously expanded the scope of eligible investments managed by SFOs. Representative measures include strengthened tax incentives for SFOs, family-owned investment holding companies and investment funds, with key benefits extended to assets such as precious metals including gold, digital assets and private credit. Hong Kong has also streamlined family office establishment procedures. If operations do not fall under regulated activities under the Securities and Futures Ordinance, no separate licensing or prior approval is required to establish a family office.

Singapore Also Emerges as Major Haven for Geopolitical Flight Capital

Capital leaving Dubai is flowing not only into Hong Kong but also into Singapore. Major Singaporean law firms and asset managers are reportedly being inundated with relocation inquiries from Dubai-based family offices. One Singapore-based wealth management lawyer said, “A significant portion of our Dubai clients with average assets exceeding $50 million requested emergency relocations within a week.” Another major asset manager revealed it had simultaneously received asset-transfer inquiries from 10 to 20 family offices concerned about a prolonged conflict. Some Indian entrepreneurs reportedly took immediate action after the initial airstrikes, urgently wiring hundreds of thousands of dollars in cash to Singaporean banks.

The windfall is also evident in the earnings of Singapore’s major commercial banks. Combined non-interest income at DBS, OCBC and UOB surged to approximately $3.8 billion in the first quarter this year, driven by powerful inflows into wealth management divisions. In a recent report, UOB stated, “As geopolitical uncertainty in the Middle East intensifies, Singapore’s appeal as a safe-haven jurisdiction has become increasingly prominent, leading to significant liquidity inflows from Middle Eastern clients reallocating assets out of Dubai, which has been reclassified as a high-risk region.” Analysts say Singapore’s defensive governance model — characterized by political stability and a tightly managed family office approval system capable of processing approvals within three months — has become a powerful attraction during periods of crisis.

Indeed, since the outbreak of the Iran war, the priorities of the wealthy have shifted from tax minimization toward survivability, capital accessibility and legal stability, further enhancing Singapore’s relative premium. Through its 13O and 13U fund tax incentive schemes, Singapore offers tax exemptions on certain investment income generated by qualifying funds managed by Singapore-based entities. This framework is reinforced by strong rule of law, regulatory predictability, global banking, accounting and legal networks, and English-language financial infrastructure. While Dubai represented an expansion-oriented hub driven by low taxes and a booming property market, Singapore has emerged as a defensive hub built on regulatory credibility and asset preservation capabilities.

Swiss City of Zug Gains Popularity With Low Taxes and Pro-Business Administration

A substantial portion of Middle Eastern capital is also dispersing into Switzerland. In particular, Zug is rapidly emerging as a new global wealth hub. Industry sources at Swiss private banks said inquiries from Dubai-based financiers and ultra-high-net-worth individuals have surged since the war began, while resumes from private bankers formerly employed by major U.S. and British banks have also increased sharply. According to Reuters, Swiss deposits from Dubai private and non-bank clients have risen approximately 40% over the past two months.

The same pattern is becoming visible in the property market. According to local real estate industry sources, inquiries for ultra-luxury homes in Zug have risen rapidly, driven primarily by Middle Eastern buyers. Zug has become increasingly popular as a family office base not only because of its tax advantages, but also due to its low crime rates, international schools and extensive global accounting and legal networks. Some Middle Eastern investors are reportedly considering relocating both residency and corporate entities to Switzerland.

Switzerland’s growing appeal extends beyond tax optimization alone. Following the Iran war, global wealth holders are fundamentally redefining their asset-allocation criteria. While tax rates and investment returns once dominated decision-making, political neutrality, legal stability, asset-protection systems and global remittance accessibility are now emerging as far more critical considerations. Switzerland has long maintained its position as the world’s largest offshore wealth management market, supported by massive private banking networks including UBS, Julius Baer, Pictet and Lombard Odier. In particular, the Swiss financial system continues to preserve its reputation as “the world’s most trusted refuge for assets” during periods of war, sanctions and regime change.

Security Trumps Tax Benefits as Ultra-Wealthy Capital Returns to London

Capital departing Dubai is also beginning to return to London. As the war between the United States, Israel and Iran drags on, growing concerns over security are fueling what amounts to a form of “wealth reshoring.” However, capital flows into London appear less like permanent relocation and more akin to diversified evacuation strategies. The Financial Times described the phenomenon as accelerating “Regrexit” — a portmanteau combining “regret” and “Brexit.”

According to the FT, one in eight British nationals residing in Dubai as of early last month had already departed for London. Some wealthy individuals are reportedly adopting dual-track strategies by maintaining their Dubai bases while simultaneously establishing temporary residences and secondary financial structures in London. Market observers also suggest that if Dubai’s safe-haven image partially recovers after the war ends, some capital could eventually flow back into the Gulf region. In essence, the current movement reflects less a complete “Dubai exit” and more a broader effort to diversify geopolitical risk.

Nevertheless, analysts say the Iran war is allowing London to regain visibility in the global competition among financial centers. Although concerns have mounted in recent years over the erosion of London’s financial dominance following Brexit, the expansion of geopolitical risks triggered by the war is instead re-emphasizing the city’s traditional strengths. As global wealth holders increasingly prioritize legal stability, capital accessibility and international financial networks over low tax rates, London’s competitiveness is undergoing a renewed reassessment.